Information agency Credinform represents an overview of trends among the largest companies of Moscow’s real economy.

Enterprises of Moscow’s real economy with the largest volume of annual revenue (TOP-10 and TOP-500) were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2015 and 2016). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets

Indicator of real cost of corporate assets, which is annually calculated as the difference between assets of the company and its debt liabilities. If the company’s debts exceed net worth value, net assets indicator is considered negative (insufficiency of property).

^*) – indicators of growth or reduction compared to the previous period are marked with green and red in columns 4 and 5 respectively.

Picture 1. Change in average net assets value of the largest companies of Moscow’s real economy in 2014 – 2016

Sales revenue

The revenue of the largest 10 companies of Moscow’s real economy made 33% of the total revenue of TOP-1000 companies in 2016 (Picture 2).

Picture 2. Shares of participation of TOP-10 enterprises in the total revenue of TOP-1000 companies for 2016

Trend to increase in revenue volume is observed (Picture 3).

Picture 3. Change in the industry average revenue indicators of companies of Moscow’s real economy in 2014 – 2016

Profit and loss

Profit volume of the largest 10 companies of Moscow’s real economy made 51% of the total profit of TOP-1000 companies in 2016 (Picture 4).

Picture 4. Shares of participation of TOP-10 enterprises in the total profit volume of TOP-1000 companies for 2016

Industry average values of the profit indicators of companies for the three-year period have a trend to increase; average net loss value decreases (Picture 5).

Picture 5. Change in the average profit indicators of the largest companies of Moscow’s real economy in 2014 – 2016

Key financial ratios

Average industry indicator of the total liquidity ratio of TOP-1000 companies in 2014 – 2016 were above or within the recommended values – from 1,0 to 2,0 (Picture 6).

The total liquidity ratio (the relation of the amount of current assets to short-term liabilities) shows the sufficiency of company’s funds for repayment of its short-term liabilities.

Picture 6. Change in the industry average values of the total liquidity and solvency ratios of the largest companies of Moscow’s real economy in 2014 – 2016

For three years, the instability of return on investment ratiowith trend to increase was observed (Picture 7).

The ratio is calculated as the relation of net profit to the sum of own capital and long-term liabilities and demonstrates the return on the equity involved in the commercial activity and the long-term borrowed funds of an organization.

Picture 7. Change in the industry average values of the return on investment of the largest companies of Moscow’s real economy in 2014 – 2016

Asset turnover ratio is calculated as the relation of sales proceeds to the average value of total assets for a period and characterizes the efficiency of use of all available resources, regardless of the sources of their attraction. the coefficient shows how many times a year a complete cycle of production and circulation is made, yielding profit.

For the three-year period, this ratio had a trend to increase (Picture 8).

Picture 8. Change in the industry average values of asset turnover ratio of the largest companies of Moscow’s real economy in 2014 – 2016

Production and services structure

Companies engaged in wholesale and oil extraction have the highest share in total revenue among TOP-1000 enterprises (Picture 9).

Picture 9. Distribution of types of activity to total revenue of TOP-1000 companies, %

Financial position score

An assessment of the financial position of TOP-1000 companies shows that more than a half of enterprises are in financial situation above average (Picture 10).

Picture 10. Distribution of TOP-1000 companies by financial position score

Solvency index Globas

The majority of TOP-1000 companies got Superior, High, Strong or Medium Solvency index Globas, that indicates their ability to timely and fully fulfill debt liabilities (Picture 11).

Picture 11. Distribution of TOP-1000 companies by Solvency index Globas

Thus, a comprehensive assessment of the largest companies of Moscow’s real economy, taking into account the main indices, financial indicators and ratios, points to prevalence of favorable trends.

Information Agency Credinform has prepared the ranking of the largest companies of Moscow's real economy. The largest enterprises (TOP-1000 and TOP-10) in terms of annual revenue were selected according to the data from the Statistical Register for the available periods (from 2007 to 2016). Then the companies were ranged by ROI ratio (Table 1). The analysis was based on data of the Information and Analytical system Globas.

Return on investments (%) is the ratio of net profit (loss) and net assets value. It demonstrates the return level from each ruble, received from the investments. In other words it shows how many monetary units the company used to obtain one monetary unit of net profit. The ratio is used for the assessment of fund raising at interest.

In general, normative values for ROI ratio are not set as they are changing due to the industry in which company operates.

For the most full and fair opinion about the company’s financial position, the whole set of financial indicators and ratios of the company should be taken into account.

The average value of ROI ratio within TOP-10 group of companies is significantly lower than average value of TOP-1000 companies.

In 2016, only three companies from TOP-10 list increased the revenue and net profit in comparison with 2015. The companies with decrease in net profit, revenue, ROI ratio are marked red in columns 2-7 of Table 1.

Picture 1. ROI ratio and revenue of the largest companies of Moscow's real economy (TOP-10)

For the last 3 years, the average values of ROI ratio showed increasing trend (Picture 2).

Picture 2. The change of ROI ratio average values within 2014 – 2016 for the largest companies of Moscow's real economy

All companies from TOP-10 list have the upper levels of solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully.